Every field has its own lingo, so does the real estate sector and one should be aware of what one wants and what certain terms mean. A novice in real estate market can be perplexed by the complicated estate terminology and in haste take wrong decisions. To take precise decisions one must know the basic terms in real estate business. It may be related to the basic terms and more complex ones that help you choose the best payment plan.

Terms You Must Know Before Starting Your Home Hunt

Firstly, you must know the terms related to the property you are investing in, such as-

Carpet Area- As the term suggests the carpet area refers to the area where the carpet can be laid down. So the area which is enclosed between the walls of the office or house and which is the functional area is called the carpet area. [Read more…]

Freehold vs Leasehold- These two Real Estate Jargons are confusing, but yet they are commonly used. In urban areas two types of properties exist- freehold and leasehold. In case of freehold property [plot or flat], the owners right is full and unconditional [within the parameters of law of the land]. In case of a standalone property, the owner owns the property and also the land on which it stands. In case of multi-level property, the land ownership is usually divided in proportion to the floor area of each owner.

The ownership of the freehold property is transferred to the buyer through registration of the sale deed. In case of a leasehold property, on the other hand, the land-owning agency gives the land on lease to the lessee for a stipulated period of time. The land ownership rights remain with the lessor. The lessee pays a premium and needs permission of the lessor before he sells the property.

Since property deals involve large sums of money, buyers need to be cautious and exercise all kinds of precautions. The ownership status of the property is one of the first issues you must address. Confirm that the land has a clear and marketable tittle. From legal stand point experts say that buying a freehold property is always preferable to a leasehold property. [Read more…]